Rhode Island § 27-43-1 - Captive Insurance Companies

§ 27-43-1. Definitions.

As used in this chapter, unless the context requires otherwise:

(1) “Affiliated company” means any corporation controlled by or an affiliate of a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management.

(2) “Association” means any association of individuals, corporations, partnerships, or associations that has a separate legal existence, the member organizations of which collectively:

(i) Own, control, or hold with power to vote all of the outstanding voting securities of an association captive insurance company incorporated as a stock insurance company; or

(ii) Have complete voting control over an association captive insurance company incorporated as a mutual insurance company.

(3) “Association captive insurance company” means any company that insures risks of the member organizations of the association, and their affiliated companies.

(4) “Captive insurance company” means any subsidiary captive insurance company, association captive insurance company, or industrial insured captive insurance company formed or licensed under the provisions of this chapter, including a captive insurance company that is organized as a protected cell company under the Protected Cell Companies Act, chapter 64 of this title.

(5) “Commissioner” means the director of the department of business regulation.

(6) “Industrial insured” means an insured:

(i) Who procures the insurance of any risk or risks by use of the services of a full-time employee acting as an insurance manager or buyer;

(ii) Whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars ($25,000); and

(iii) Who has at least twenty-five (25) full-time employees.

(7) “Industrial insured captive insurance company” means any company that insures risks of the industrial insured that comprise the industrial insured group, and their affiliated companies.

(8) “Industrial insured group” means any group that meets either of the following criteria:

(i) Any group of industrial insureds that collectively: (A) Own, control, or hold with power to vote all of the outstanding voting securities of an industrial insured captive insurance company incorporated as a stock insurance company, or (B) Have complete voting control over an industrial insured captive insurance company incorporated as a mutual insurance company; or

(ii) Any group created under 15 U.S.C. § 3901 et seq., as a corporation or other limited liability association.

(9) “Member organization” means any individual, corporation, partnership, or association that belongs to an association.

(10) “Parent” means a corporation, partnership, or individual that directly or indirectly owns, controls, or holds with power to vote more than fifty percent (50%) of the outstanding voting securities of a subsidiary captive insurance company.

(11) “Personal lines of insurance” means personal motor vehicle, homeowner’s insurance coverage, health insurance, life insurance, workers’ compensation, residential fire insurance, or any component of them.

(12) “Subsidiary captive insurance company” means any company that insures risks of its parent and affiliated companies.